Simpleton Shoes sold 22,000 units for a total of $990,000 in sales in the second quarter of 20x6. Simpleton budgets 26% of the unit sale price for direct materials costs. If Simpleton expects to increase sales by 5% each quarter, how much do they need to budget for direct materials in the first quarter of 20x7? Assume that Simpleton keeps a raw materials inventory for 10% of the next quarters sales in stock.

A : $329,261

B : $268,176

C : $270,270

D : $299,462