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: 5 pounds at $9.00 per pound $ 45.00

Direct labor: 3 hours at $14 per hour 42.00

Variable overhead: 3 hours at $9 per hour 27.00

Total standard variable cost per unit $ 114.00

The company also established the following cost formulas for its selling expenses:

Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 300,000

Sales salaries and commissions $ 300,000 $ 22.00

Shipping expenses $ 13.00

The planning budget for March was based on producing and selling 20,000 units.

However, during March the company actually produced and sold 24,800 units and incurred the following costs: Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. Direct-laborers worked 65,000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was $612,300. Total advertising, sales salaries and commissions, and shipping expenses were $303,000, $505,000, and $215,000, respectively.

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