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OG2015 PS A project scheduled to

by lionsshare » Fri Sep 08, 2017 3:08 pm
A project scheduled to be carried out over a single fiscal year has a budget of $12,600, divided into12 equal monthly allocations. At the end of the fourth month of that fiscal year, the total amount actually spent on the project was $4,580. By how much was the project over its budget?

(A) $380
(B) $540
(C) $1,050
(D) $1,380
(E) $1,430

OA: A

Anyone could please help in explaining the solution. Thanks.
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by Jay@ManhattanReview » Fri Sep 08, 2017 11:43 pm
lionsshare wrote:A project scheduled to be carried out over a single fiscal year has a budget of $12,600, divided into12 equal monthly allocations. At the end of the fourth month of that fiscal year, the total amount actually spent on the project was $4,580. By how much was the project over its budget?

(A) $380
(B) $540
(C) $1,050
(D) $1,380
(E) $1,430

OA: A

Anyone could please help in explaining the solution. Thanks.
Budget for 12 months = $12,600
Monthly allocations = $12,600/12 = $1050

Thus, budget for 4 months = 4*$1050 = $4200

Thus, the project was $4,580 − $4,200=$380 over budget for the first 4 months.

The correct answer: A

Hope this helps!

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by Jeff@TargetTestPrep » Mon Mar 12, 2018 10:35 am
lionsshare wrote:A project scheduled to be carried out over a single fiscal year has a budget of $12,600, divided into12 equal monthly allocations. At the end of the fourth month of that fiscal year, the total amount actually spent on the project was $4,580. By how much was the project over its budget?

(A) $380
(B) $540
(C) $1,050
(D) $1,380
(E) $1,430
We know that our yearly budget must be divided into 12 EQUAL monthly allocations, so we need to divide $12,600 by 12. This will give us the amount of each monthly allocation. We have:

$12,600/12 = $1,050

Thus, $1,050 should be spent PER MONTH on the project. Therefore, after 4 months, 4 x $1,050 = $4,200 should have been spent on the project.

However, we are told that $4,580 was actually spent, so the project was over budget by:

$4,580 - $4,200 = $380

Answer: A

Jeffrey Miller
Head of GMAT Instruction
[email protected]

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