A retirement home provides accommodations for up to 200 residents on its 4-acre retirement community. The manager was disappointed to see that last months actual results were quite different from the budget for March. The retirement home charged $2,000 per resident as planned. Expenses are categorized by the four departments that run the community home: Housekeeping, Maintenance, Dietary, and Nursing. The manager is not sure what went wrong and is concerned she will need to lay off employees if this happens again in April. Marchs budget and actual results are shown below.March BudgetRevenue ($2,000per resident 180residents)$360,000Less expenses:Housekeeping ($65,000 plus $15 per resident)67,700Maintenance ($30,000 plus $23 per resident)34,140Dietary ($40,000 plus $180 per resident)72,400Nursing ($85,000 plus $300 resident)139,000Operating income$46,760March Actual ResultsRevenue$400,000Less expenses:Housekeeping97,800Maintenance59,200Dietary75,800Nursing144,900Operating income$46,760Using flexible budgeting, which one of the following statements is correct?

A.All four departments have an unfavorable variance.

B.The revenue variance is favorable.

C.Nursing is the department with the highest unfavorable variance.

D.Housekeeping and Maintenance departments have unfavorable variances.