Reply to: "The difference between the single-rate and dual-rate methods of support-department allocation is that the single-rate method does not distinguish between fixed and variable costs. It allocates costs in each cost pool (support department) to cost objects (operating departments) using the same rate per unit of a single allocation base. The dual-rate method separates support department costs into a variable-cost pool and a fixed-cost pool and allocated each pool using a different cost-allocation base. For both rates, managers can use a budgeted rate or the eventual cost rate to allocate support-department costs to operating departments (Datar, S. M, & Rajan, M. V., 2021). In a single-rate method, an example that would be advantageous is a budgeted rate of $100 per hour being used to allocate costs and a $40 budgeted variable cost per hour. The budgeted rate is higher than the variable cost because it includes an allocated amount for fixed costs. In a dual-rate method, an example would be paying an employee overtime by multiplying the employee's regular rate by 1.5. Some complexities that arise when allocating costs for multiple support departments are accuracy and simplicity, managing the behavioral and ethical implications, cost shifting, and aligning the cost allocation system with the organizational goals and strategies