Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 672,000 units, estimated beginning inventory is 103,000 units, and desired ending inventory is 81,000 units. The quantities of direct materials expected to be used for each unit of finished product are as follows:

Material A: 0.50 lb. per unit @ $0.51 per pound
Material B: 1.00 lb. per unit @ $2.04 per pound
Material C: 1.20 lb. per unit @ $1.02 per pound