Mary's Fine Fashions manufactures and sells various types of women's clothing. At the end of 2018, Mary had estimated for the production and sale of 25,000 short-sleeve shirts. Each shirt has a standard calling for 2.5 yards of direct material at a standard cost of $1.25 per yard and 12 minutes of direct labor time at a standard cost of $.20 per minute. During 2019, the company actually produced and sold 23,000 shirts. These 23,000 shirts had an actual direct materials cost of $77,142 (59,340 yards at $1.30 per yard) and an actual direct labor cost of $63,250 (253,000 minutes at $.25 per minute). Each shirt sells for $20.

A. What is Mary's net income (loss) based on a flexible budget?

B. What is Mary's flexible budget variance?