A certain company has budgeted $1,440 for entertaiment expenses for the year, divided into 12...

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A certain company has budgeted $1,440 for entertainment expenses for the year, divided into 12 equal monthly allocations. If by the end of the third month, the total amount spent on entertainment was $300, how much was the company under budget or over budget?

A. $60 under budget
B. $30 under budget
C. $30 over budget
D. $60 over budget
E. $180 over budget

OA A

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Dividing $1440 by 12, they budgeted $120 per month, so $360 for three months. If they spent $300, they were $60 under budget.
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AAPL wrote:
Wed Feb 12, 2020 3:12 am
Manhattan Prep

A certain company has budgeted $1,440 for entertainment expenses for the year, divided into 12 equal monthly allocations. If by the end of the third month, the total amount spent on entertainment was $300, how much was the company under budget or over budget?

A. $60 under budget
B. $30 under budget
C. $30 over budget
D. $60 over budget
E. $180 over budget

OA A
The budget for 3 months of entertainment expenses is 1,440/12 x 3 = 120 x 3 = $360. Since the actual spending for the 3 months was $300, the company was $60 under budget.

Answer: A

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