Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

Proportion of Services Used by:

Department Direct costs Direct costs S1 S2 P1 P2

S1 $78,000 0.70 0.10 0.20

S2 $127,000 0.20 0.30 0.50

P1 $229,000

P2 $217,000

Under the step-method of allocation, the total amount of service costs allocated to producing departments would be: