GMAT OFFICIAL GUIDE PS

Solution:

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

About The Author

Scott Woodbury-Stewart is the founder & CEO of Target Test Prep. A passionate teacher who is deeply invested in the success of his students, Scott began his career teaching physics, chemistry, math, and biology. Since then, he has spent more than a decade helping students gain entry into the world’s top business schools, logging 10,000+ hours of GMAT, EA, GRE and SAT instruction. Scott also served as lead content developer and curriculum architect for the revolutionary courses Target Test Prep GMAT, Target Test Prep EA, Target Test Prep GRE and Target Test Prep SAT Quant.