$1.$ What costs are excluded from the Gross Margin calculation? Why would we exclude

these costs?

$2.$ What does the mix of the weighted$-$average contribution margin tell us about the

impact to profits of each product?

$3.$ Should Apple Hilly Farms complete the Special Order? Explain your answer by using

pricing terms from the textbook.

$4.$ Was manufacturing overhead under or over applied? What does over or under

applied overhead mean?

$5.$ Why would Apple Hilly Farms use standard costing since actual costing gives the

actual cost? Why would they not want to wait until the actual costs are known?

$6.$ Explain the variances calculated for Apple Hilly Farms. Why was September a good or

bad month for them?