The Chapeau Company is noted for an exceptionally impressive line of one-size fits-all men's hats. Chapeau has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2018: Activity Cost Cost driver Marketing $106,000 $1,540,000 of sales Customer service 70,000 10,000 customer Order execution 2,000 500 orders Warehousing 15,000 152 product lines Required: 1. What kind of a costing system is your company using? Justify your answer. 2. Your management argues that the current costing does not add any benefits to the company. Do you agree or disagree with his statement? Present convincing arguments. 3. How do you think the company picked up the above cost drivers? Where does each belong in the hierarchy? Are these cost drivers appropriate? Do they have any negative implications? 4. All that you need to care about during product costing is output unit level costs. Do you agree or disagree with this statement? Present convincing arguments while having in mind the cost hierarchies. 5. Determine the activity-cost-driver rate for each of the four selling and distribution activities