Finlon Upholstery, lnc., uses a jobeorder costing system to accumulate manufacturing costs. The company's workeine process on December 31, 20x1, consisted of onejob (no. 2077), which was carried on the yearend balance sheet at $156,800. There was no nishedgoods inventory on this date. Finlon applies manufacturing overhead to production on the basis of directlabor cost. (The budgeted directlabor cost is the company's practical capacity, in terms of directelabor hours. multiplied by the budgeted directrlabor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used $ 5,558,888 Direct labor 4,358,888 Indirect material used 65,888 Indirect labor 2,868,888 Factory depreciation 1,748,888 Factory insurance 58,888 Factory utilities 838,888 Selling and administrative expenses 2,168,888 Total $17;513;999 Job no. 2077 was completed in January 20x2; there was no work in process at yearend. Alljobs produced during 20x2 were sold with the exception ofjob no. 2143. which contained directmaterial costs of $155,000 and direct-labor charges of $85,000. The company charges any under or overapplied overhead to Cost of Goods Sold. 7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? 0 Yes 0 No