1. Ford Motor Company's service department measures its output by the number of vehicles serviced. Ford has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Revenue Fixed Element per Month Variable Element per Vehicle Serviced $490 Employee salaries and wages $5,640 $90 Servicing materials Other expenses $3,540 $70 When the company prepared its planning budget at the beginning of December, it assumed that 34 vehicles would have been serviced. However, 32 vehicles were actually serviced during December. Prepare the flexible budget for December. Vehicles Serviced Revenue Salaries and wages Service Material Other Expenses Net Income