Blue Spruce, Inc. manufactures afghans. The budgeted units to be produced and sold are as follows: Expected Production 3,600 August Expected Sales 2,950 September 2,850 3,950 It takes 20 yards of yarn to produce an afghan. The company's policy is to maintain yarn at the end of each month equal to 5% of next month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.30 a yard. At August 1, 3,600 yards of yarn were on hand. Compute the budgeted cost of direct materials purchases for August Budgeted cost of direct materials purchases for August $