Suppose Congress enacts a tax reform law, and the average federal tax rate drops from 30% to 20%. Researchers investigate the impact of the tax cut and find that the income subject to the tax increases from $600 billion to $650 billion. The theoretical explanation is that workers have increased their work effort in response to the incentive of lower taxes.

Adamson company manufactures four lines of garden tools. as a result of an activity analysis, the accounting department has identified eight activity cost pools. each of the product lines is produced in large batches, with the whole plant devoted to one product at a time. classify each of the following activities or costs as either unit-level, batch-level, product-level, or facility-level. activities (a) machining parts. (b) product design. (c) plant maintenance. (d) machine setup. (e) assembling parts. (f) purchasing raw materials. (g) property taxes. (h) painting.