M Publishers, Inc. budgeted production of 79,500 diaries in 2012. Paper is required to produce a diary. Assume 8 square yards of paper are required for each diary. The estimated January 1, 2012 paper inventory is 15,250 square yards. The desired December 31, 2012 paper inventory is 13,500 square yards. If paper costs $0.70 per square yard, determine the direct materials purchases budget for 2012.

A. $230,550

B. $15,900

C. $461,100

D. none of the above answers