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Ayayai, Inc. manufactures afghans. The budgeted units to be produced and sold are as follows: Expected Production Expected Sales August 3,400 2,900 September 2,800 3,900 It takes 16 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 $0.20 a yard. At August 1, 2,720 yards of yarn were on hand. Compute the budgeted cost of direct materials purchases for August. Budgeted cost of direct materials purchases for August $