A commuter bus company uses two measures of activity, routes and commuters, the cost formulas in its budgets and performance reports. The cost formula for bus operating costs is $56,880 per month plus $2,874 per route plus $16 per commuter. The company expected its activity in November to be 86 routes and 256 commuters, but the actual activity was 92 routes and 262 commuters. The actual cost for bus operating costs in November was $305,100. The spending variance for bus operating costs in November would be closest to: Multiple Choice $3,040 Favorable O $20,380 Unfavorable $17,340 Favorable $20,380 Favorable Required information [The following information applies to the questions displayed below.] Durnev Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Durnev Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 70,000 134,000 48,300 212,000 $ 464,300 $ 73,000 306,000 85,300 $ 464,300 The company managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and $260,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 30% of the cost of next month's sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. 4. Monthly selling and administrative expenses are always $42,000. Each month $7,000 of this total amount is depreciation expense and the remaining $35,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. How much is the company's expected cash disbursement for merchandise in the month of July