Derek Co. manufactures beanies. The budgeted units to be produced and sold are below:

	Expected Production	Expected Sales
November	5,200	4,500
December	4,160	5,800

It takes 36 yards of yarn to produce a beanie. The company's policy is to maintain yarn at the end of each month equal to 8% 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 $0.40 a yard. At November 1, 14,976 yards of yarn were on hand.

Required: Compute the budgeted cost of material purchases for November (Round to the nearest dollar).