Required information Problem 15-39 Cost-Plus Pricing; Bidding (LO 15-3,15-10) [The following information applies to the questions displayed below] North American Pharmaceuticals, Inc., specializes in packaging bulk drugs in standard dosages for local hospitals. The company has been in business for seven years and has been profitable since its second year of operation. Don Greenway, Assistant Controller, installed a standard costing system after joining the company three years ago. Wyant Memorial Hospital has asked North American Pharmaceuticals to bid on the packaging of one million doses of medication at total cost plus a return on total cost of no more than 20 percent. Wyant defines total cost as including all variable costs of performing the service, a reasonable amount of fixed overhead, and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Wyant has indicated that any bid over $0.06 per dose will be rejected. Greenway has accumulated the following information prior to the preparation of the bid. Direct labor Variable overhead Fixed overhead Production rate $27.00 per direct-labor hour (DLH) $23.00 per DLH $31.00 per DLH Incremental administrative costs $3,100 for the order 2,000 doses per DLH Problem 15-39 Part 2 2. Calculate the bid price per dose using total cost and the maximum allowable return specified by Wyant Memorial Hospital. (Round your answer to 3 decimal places.) Bid price per dose $ 0.049