Final answer:
To find the amount for housing and fixed expenses, subtract FICA, federal, and state withholdings from the gross pay of $1,935.00. The total deductions add up to $573.63, resulting in a net pay of $1,361.37. The closest answer is option (a) $490.06.
Step-by-step explanation:
The question revolves around calculating the amount available for housing and fixed expenses after deductions from a gross pay of $1,935.00. To ascertain this, we need to subtract the involuntary deductions for FICA, federal withholding, and state withholding from the gross pay. Let's compute each of these:
- FICA: 7.65% of $1,935.00 equals $147.93.
- Federal withholding: 13% of $1,935.00 equals $251.55.
- State withholding: 9% of $1,935.00 equals $174.15.
When we sum these deductions, we get $147.93 + $251.55 + $174.15 = $573.63. Now, we can calculate the net pay (take-home pay) by subtracting the total deductions from the gross pay:
$1,935.00 - $573.63 = $1,361.37
Therefore, the amount allowed for housing and fixed expenses, from the given multiple choices, is closest to option (a) $490.06.