Problems 1. (8 Points)Label the following costs as value-adding (VA) or nonvalue-adding (NVA): 1. Engineering design 2. Machine repair 3. Inventory storage 4. Machining 5. Assembly 6. Painting 7. Inspections 8. Packaging 2. (7 points) Tim Taylor Tool Company manufactures small tools. Classify each of the following activity costs of the tool company as either unit level, batch level, productlevel, or 1. Plant management 2. Painting 3. Machine setups 4. Product design 5. Cutting 6. Inspection 7, Inventory management