Extended Example Week 3 - Wright-U-R plc Wright-U-R plc produce medical scanners for use in hospitals. The company has just completed the manufacture of its first newly designed system W-316. It took 3000 direct manufacturing labour hours (dmlh) to produce this one unit. Wright-U-R plc believes that a 90% cumulative average-time learning model for estimating direct manufacturing labour-hours applies to W-316. The natural log of 0.9 is -0.1054 and the natural log of 2 is 0.6931 The variable costs of W-316 are; Direct material costs 80,000 per unit 25 per dmlh Direct manufacturing labour costs Variable manufacturing overhead costs 15 per dmlh Part (a) required - Calculate the total variable costs of producing 2, 4 and 8 units. Assume the same information as for part (a) except that Wright-U-R plc uses a 90% incremental unit-time learning curve as a basis for forecasting direct manufacturing labour- hours. Part (b) required - Calculate the total variable costs of producing 2, 4 and 8 units