Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $10.00 per pound $ 40.00 Direct labor: 2 hours at $13 per hour 26.00 Variable overhead: 2 hours at $9 per hour 18.00 Total standard variable cost per unit $ 84.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 240,000 Sales salaries and commissions $ 180,000 $ 16.00 Shipping expenses $ 7.00 The planning budget for March was based on producing and selling 29,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production. Direct-laborers worked 59,000 hours at a rate of $14.00 per hour. Total variable manufacturing overhead for the month was $564,040. Total advertising, sales salaries and commissions, and shipping expenses were $245,000, $475,000, and $155,000, respectively. Required:

1. What raw materials cost would be included in the companys flexible budget for March?