Starbucks faces many situations where it needs to apply the decision tools learned in this chapter. Assume that during the past month, Starbucks produced $20,00050-$pound sacks of dark roast Sumatra coffee beans, with the standard cost for one $50-$pound sack of dark roast Sumatra as follows.

Standard

Manufacturing Cost Elements

Quantity

$\backslash$times

Price

$=$

Cost

Direct materials $($unroasted beans$)$

$60$ lbs$.$

$\backslash$times

$$1\mathrm{.}00$

$=$

$$60\mathrm{.}00$

Direct labor

$0\mathrm{.}20$ hours

$\backslash$times

$$12\mathrm{.}00$

$=$

$2\mathrm{.}40$

During the month, the following transactions occurred in manufacturing the $20,00050-$pound sacks of Sumatra coffee.

Purchased $1,100,000$ pounds of unroasted beans at a price of $$1\mathrm{.}10$ per pound for a total cost of $$1,210,000.$

$3,900$ direct labor hours were worked at a total labor cost of $$50,700($an average hourly rate of $$13\mathrm{.}00).$

Instruction

Determine whether Starbucks met its price and quantity objectives relative to materials and labor.