The table shows the amount budgeted and the amount spent for each of

In order to solve this problem,
Step 1: We need to calculate 6% of the amount budgeted for the various accounts.
Payroll - 6600
Taxes - 2400
Insurance - 150

Step 2: The range of the various departments are
Payroll - 103400 to 116000
Taxes - 37600 to 42400
Insurance - 2350 to 2650

From the values given in the question stem for the amount spent,
Payroll and Insurance have values outside the range. Hence Option D is our answer.

Hi,
6% of 40,000 is 2400 not 2000 , please correct .

Isn`t it time consuming to calculate all this ? is there a shortcut ?

Hi All,

We're given a table of information that compares the amount spent to the amount budgeted for 3 different categories. We're asked for the categories in which the amount SPENT differed from the amount budgeted by MORE than 6 percent of the amount budgeted.

It's important to note that the question asks for a DIFFERENCE of more than 6% (which does not necessarily mean "higher" or "lower" - just a difference). This question ultimately comes down to performing a few calculations, but you might find a particular math tactic can save you a bit of time.

Let's start with 'Insurance'; budgeted = $2500, spent = $2340... To calculate 6% of $2500, you might find it easy to calculate 1% first (since that involves simply 'moving' the decimal point 2 spaces to the left... 1% of $2500 = $25. Therefore 6% would equal 6 times that.... (6)($25) = $150.

$2340 is $160 less than $2500 - and since $160 is greater than $150, that difference is clearly greater than 6%.

'Taxes' seems like the next easiest number to deal with: budgeted = $40,000, spent = $42,000...
1% of $40,000 = $400, so 6% = (6)($400) = $2400. The difference between budgeted and spent is only $2,000... so that is LESS than a 6% difference. At this point, the correct answer must be either C or D.

'Payroll'; budgeted = $110,000, spent = $117,000. 1% of $110,000 = $1,100, so 6% = $6,600. The difference between the budgeted and spent is $7,000, so the difference here is also greater than 6%.

Final Answer:

GMAT assassins aren't born, they're made,
Rich

Its asking us which ones had variation more than 6%.

Payroll - we get -17/110*100 approx 15% over spend

Taxes - we get 2000/42000*100 = 2% . So not more than 6%

Insurance - -160/2500*100 = savings by 6.4%

So (C) is answer

Please correct my understanding if method is wrong. thanks

Hi, pushpitkc,
Can you help to let me know if the below is correct.
The taxes should we calculate 6% then its will be 2400 and corresponding range will be 37600 to 42400.

Probus

Hey Probus and anje29

Thanks for intimating. Have made the necessary changes!

to find out category with difference more that 6% (doesn't matter increase or decrease)

1. increase is $7000. so (7000/110000)*100 => 70/11 i.e., >6% (Accepted)
2. increase is $2000. so (2000/40000)*100 => 20/4 i.e., 5% (Rejected)
3. decrease is $160. so (160/2500)*100 => 160/25 i.e, >6% (Accepted)

1 & 2 will have >6% change i.e., payroll & insurance

Answer D

We can use the answer choices to help us minimise the number of calculations through this question. Here's how:

The answer choices are as follows (simplified to P-Payroll, T-Taxes, I-Insurance):
A) P
B) T
C) I
D) P & I
E) T & I

"Insurance" appears in the choices more frequently than Payroll or Taxes, so let's start our calcs with Insurance first
6% of $2500 = $150
$2500 - $2340 = $160 > $150, therefore >6%

We can eliminate answer choices A and B.

A) P
B) T
C) I
D) P&I
E) T&I


Since Payroll and Taxes appear as frequently as each other, we pick the one that's easiest to calculate - Payroll seems easy enough...
6% of $110,000 = $6600
$117,000 - $110,000 = $7000 > $6600, therefore >6%

We can now eliminate answer choice C and E. This leads us to answer choice D as the correct answer and we don't need to perform any further calculations!

A) P
B) T
C) I
D) P&I - CORRECT
E) T&I

Answer: Option D

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The question is asking about the difference it doesn't care about positive or negative
let us take 1 per cent of each and then calcullate 1,100*6 = 6600 clearly first one exceeds

3rd part 1 per cent = 25 and 25*6 =125 clearly exceeds

Therefore IMO D

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