Creating a Hypothetical Budget

Expense	Amount
Rent (monthly)	$657.00
Telephone (monthly)	$56.34
Groceries (weekly)	$56.00
Clothing (monthly with job related)	$106.00
Water & Electric (monthly)	$98.87
Weekly Dinner & Movie	$40.00

You are paid $11.75/hr. You work 40 hr/wk. Your deductions are FICA (7.65%), Federal tax withholding (10.75%), and state tax withholding (7.5%)

1. Assuming you budget a month as 4 weeks, how much is your total realized income, fixed expenses, and discretionary expenses.

2. If you are able to work 20 hours of overtime the next month and are paid 1.5 times your regular rate, how does this change your budget for that month?

3. How much can you put towards savings each month if you eliminated your discretionary expenses?

Be sure to include in your response:

A detailed budget showing income and expenses for the two different months.

Answers to the original questions.

An explanation for how you calculated the first 40 hours of income and then the additional 20 hours of overtime.

Month 1

Realized Income:	Amount
Total Income
Expense (Fixed):	Amount
Total Expenses (Fixed)
Expense (Discretionary):
Total Expenses (Discretionary)
Total Expenses (Fixed & Discretionary):

Month 2

Realized Income:	Amount
Total Income
Expense (Fixed):	Amount
Total Expenses (Fixed)
Expense (Discretionary):
Total Expenses (Discretionary)
Total Expenses (Fixed & Discretionary):

Answer rating: 100% (QA)

Answer Given Data Paid 1175hr work 40 hr wk Deductions FICA76... View the full answer