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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
$146,000
0.70
0.10
0.20
$187,000
0.30
0.50
$178,000
$179,000
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