A company has budgeted direct materials purchases of $360000 in July and $570000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. All selling and administrative expenses are paid in cash as incurred. During August, the following items were budgeted: Wages Expense Purchase of office equipment $240000 67000 Selling and Administrative Expenses 56000 Depreciation Expense 26000 Budgeted cash disbursements for August are C$507000 $814000. $870000. $896000