Westminster Company has the following information concerning its direct materials:

Direct Materials:
Standard Quantity	100,000
Actual Quantity	80,000
Standard Price	$3
Actual Price	$4

A.	Determine the materials price variance and whether it is favorable or unfavorable.
B.	Determine the materials usage variance and whether it is favorable or unfavorable.
C.	Westminster has set control limits stating that actual costs should be investigated if they fall outside the acceptable range of the standard materials cost 10%.
	i.	What is the standard materials cost?
	ii.	What are the upper and lower control limits?
	iii.	What is the actual materials cost?
	iv.	Should the actual materials cost be investigated?