Jessica recently compiled a budget for herself. She believes she needs to do a better job planning her finances and knows establishing a budget could be a step in the right direction. Her take home pay is $2,500. The following information is for the month of May: From an overall perspective, by what percent is Jessica over or under budget for the month of May?
A) 9.68% over budget
B) 9.68% under budget
C) 10.72% over budget
D) 10.72% under budget

Question

Jessica recently compiled a budget for herself. She believes she needs to do a better job planning her finances and knows establishing a budget could be a step in the right direction. Her take home pay is $2,500. The following information is for the month of May:  From an overall perspective, by what percent is Jessica over or under budget for the month of May?
A) 9.68% over budget 
B) 9.68% under budget 
C) 10.72% over budget 
D) 10.72% under budget

Quizplus · Accepted Answer

This question requires familiarity using Excel to calculate percentages. To calculate the over or under budget percentage, first add the values in the Budget Column and then add the values the Actual Column. Place these answers in cells B9 and C9 respectively. The total budgeted amount equals $1,950, and the total actual amount equals $2,159. Then, use the formula: "=(C9 - B9)/B9" typed into a different cell. ($2,159 - $1,950)/$1,950 = 10.72% over budget (Choice C). The remaining choices are incorrect.

Jessica Recently Compiled a Budget for Herself