1. 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			S1		S2		P1		P2
   S1	$	67,000				0.60		0.10		0.30
   S2	$	107,000		0.30				0.20		0.50
   P1	$	167,000
   P2	$	147,000

   Under the direct method of cost allocation, the amount of S1 costs allocated to S2 would be:

   		$0.
   		$40,200.
   		$6,420.
   		$32,100.