203 BPP

Broad Co produces quarterly rolling budgets and had forecast the costs of material purchases for the next four quarters (quarters 1, 2, 3 and 4). Purchases for quarter 1 were budgeted to be $220,000 and it was anticipated that the cost of materials would rise at a rate of 2% per quarter. At the end of quarter 1: Actual material purchases were recorded as $210,000. This was due to a change of material supplier during the quarter. A revised estimate for the increase in material purchase costs was made. The rise was now predicted to be only 1% per quarter. The budget was updated. What estimate for total annual material purchases should be recorded in the updated budget (to the nearest whole $)?