Answer the Following

question 31

Essay

Answer the following. Round all numbers to the nearest dollar.
-Helena is a college student. She works part-time as a barista and earns about $325 a week after taxes, including tips. She has a scholarship that pays $1500 per semester and she attends two semesters a year. She hopes to work full-time in the summer and should make $2800 a month after taxes for 3 months, not including the $325 she will also earn as a barista through the summer. She uses her dad's car at no cost other than gasoline and her own car insurance. She lives at home for free and quickly jots down these ongoing expenses. To make it easy, assume the income she receives in the summer as well as the scholarship funds are spread out over 12 months in equal amounts. Find her average monthly after-tax income, average monthly expense based on the numbers above, and the difference between the two. What expenses has she not considered that she should have? Based on the numbers above, how much does she need to borrow per month on average? Assuming all numbers stay the same and ignoring anything she might have failed to list, find the debt she will accumulate in an interest-free Stafford loan if she goes to school for 4 years (assume 48 months.)

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Definitions:

Homogeneous

Characterized by uniformity or similarity in composition, nature, or character, often used in reference to materials or mixtures.

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Process Costing

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.