A large research project was scheduled over the course of a 28-month p

For 28 months money allotted $84000; therefore 1 month money = 84000/28 = 3000
There for for 7 months money spent = 3000*7 = 21000; but actual money spent = 19800
Therefore project is under budget and savings = 21000-19800 = 1200
Therefore answer is (b) Under, $1200

Assuming that the budget is divided evenly and that there are no months where more funds are allocated to, we would divide $84,000 by 28 months. We would then have a projected burn rate of $3,000. When that is multiplied by 7 months we get $21,000.

We have already spent $19,800 so we are $1,200 under budget.

Answer: B

Instead of messing with 28 and 84, I simplified the division to 7 and 21 - makes 3k/month much quicker to see.

Answer = B. under, $1200

Ideal expenditure should be \(= 84000 * \frac{7}{28} = 21000\)

Actual expenditure = 19800

Less = 1200

MAGOOSH OFFICIAL SOLUTION:

METHOD ONE: The straightforward methodical Algebra Two approach (not terribly efficient)

First, figure out the cost of each month.
cost per month = 84,000/28 = 3,000.

Now, multiply by seven months: 7*($3000) = $21,000. That would be the budgeted amount, the amount theoretically supplied to the project. The real amount spent is less than this, so it is under budget.
$21,000 – #19,800 = $1200

Answer = (B)

METHOD TWO: a slightly more efficient approach using ratios.

Notice that seven months is exactly 1/4 of 28-months. Therefore, after seven months, they should have spent 1/4 of the total budget.
seven month share = 84,000/4 = 21,000.

Again, this budgeted amount is more than what was spent, so what was spent was under budget.
$21,000 – #19,800 = $1200

Answer = (B)

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