North American Pharmaceuticals, Inc., specializes in packaging bulk drugs in standard dosages for local hospitals The co

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North American Pharmaceuticals Inc Specializes In Packaging Bulk Drugs In Standard Dosages For Local Hospitals The Co 1 (50.6 KiB) Viewed 39 times

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 two million doses of medication at total cost plus a return on total cost of no more than 10 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 $0.04 per dose will be rejected Greenway has accumulated the following information prior to the preparation of the bid. Direct labor Variable overhead Fixed overhead Incremental administrative costs Production rate $25.00 per direct labor hour (DLH) $21.00 per DLH $29.00 per DLH 52,990 for the order 5,eee doses per DLH 2. Calculate the bid price per dose using total cost and the maximum allowable retum specified by Wyant Memorial Hospitat. (Round your answer to 3 decimal places.) Bid price per dose