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	$	180,000				0.70		0.10		0.20
S2	$	162,000		0.20				0.30		0.50
P1	$	197,000
P2	$	140,000

Under the direct-method of cost allocation, the amount of S1 costs allocated to P1 would be:

$18,000.

$70,000.

$182,500.

$60,000.