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

Question

https://gmatclub.com/forum/download/file.php?id=35800 The table shows the amount budgeted and the amount spent for each of three accounts in a certain company.For which of these accounts did the amount spent differ from the amount budgeted by more than 6 percent of the amount budgeted ? A. Payroll only B. Taxes only C. Insurance only D. Payroll and Insurance E. Taxes and Insurance 9qwc4m.jpg

ScottTargetTestPrep · Accepted Answer

Let’s take 6% of each value budgeted:

Payroll:

110,000 x 0.06 = 6600

Since 117000 - 110,000 = 7,000, the amount spent differed by more than 6% of the amount budgeted.

Taxes:

40,000 x 0.06 = 2,400

Since 42,000 - 40,000 = 2,000, the amount spent DID NOT differ by more than 6% of the amount budgeted.

Insurance:

2,500 x 0.06 = 150

Since 2,500 - 2,340 = 160, the amount spent differed by more than 6% of the amount budgeted.

Answer: D

EMPOWERgmatRichC · Answer

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:  D

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

shashankism · Answer

1. Payroll difference = 7000/110000 *100 = 70/11 > 6%
2. Taxes difference = 2000/40000 * 100 = 5%
3. Insurance difference = 160/2500*100 =32/5 > 6%

Answer D

pushpitkc · Answer

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.

anje29 · Answer

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

dave13 · Answer

Isn`t it time consuming to calculate all this ?

is there a shortcut ?

Madhavi1990 · Answer

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

Probus · Answer

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

pushpitkc · Answer

Hey  Probus  and  anje29

Thanks for intimating. Have made the necessary changes!

keshavmishra · Answer

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

silverprince · Answer

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

GMATinsight · Answer

Answer: Option D

Video solution by  GMATinsight

https://www.youtube.com/watch?v=gWLmGhB73Zc

avigutman · Answer

Video solution from Quant Reasoning: Subscribe for more: https://www.youtube.com/QuantReasoning? ... irmation=1 https://www.youtube.com/watch?v=HbNcpHM5fds

Crytiocanalyst · Answer

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

Anonymous · Answer

Hello Avi! I applied the method depicted in the picture and my result was A. Could you help me identify where my reasoning went wrong?
Thank you in advance 🙂

heyitsjaideepb · Answer

How is insurance more than 6%. Amount spent is clearly less than the budgeted. Hence it simply gets eliminated.

KarishmaB · Answer

For which of these accounts did the amount spent  differ from  the amount budgeted by more than 6 percent

The difference needs to be more than 6%. It doesn't matter which is higher which is lower. Even if amount spent is lower, it differs from (is less than) budgeted amount by more than 6%.

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

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

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