Economics · Management Accounting

Brighton Co. produces quarterly rolling budgets and had forecast the material purchase costs for the next four quarters (Q1, Q2, Q3, and Q4). Purchases for Q1 were budgeted at $220,000, and material costs were anticipated to rise at a rate of 2% per quarter. At the end of Q1: - Actual material purchases were recorded at $210,000 due to a change of supplier during the quarter. - A revised estimate predicted the increase in material purchase costs to be only 1% per quarter. - The budget was updated accordingly. What estimate for total annual material purchases should be recorded in the updated rolling budget (including Q1 actuals)?