Yummy Rice Cereal started a program at the beginning of 2024 in which it would provide an all-star bowl in exchange for four proof-of-purchase box tops. Yummy Rice estimates that 25% of box tops will be redeemed. The bowls cost Yummy Rice $1.10 each. In 2024, 5,240,000 boxes of cereal were sold. By year-end 906,000 box tops had been redeemed.

Required:

Calculate the premium expense that Yummy Rice should recognize for the year ended December 31, 2024.