The dual cost-allocation method classifies costs into two pools, a budgeted cost pool and an actual cost pool. 2) The single-rate method makes a distinction between fixed and variable costs. 3) Using the single-rate method transforms the fixed costs per hour into a variable cost to users of that facility. 4) The single-rate cost-allocation method provides better information for decision making than the dual-rate method. An advantage of the single-rate method is that it is easier and always the most accurate cost-allocation choice. 6) When budgeted cost-allocation rates are used, user-division managers face uncertainty about the allocation rates for that budget period. 7) When budgeted cost-allocation rates are used, managers of the supplier division are motivated to improve efficiency. 8) When budgeted cost-allocation rates are used, variations in actual usage by one division affect the costs allocated to other divisions. The only choices that a firm has for support department cost allocation rates are to use either a budgeted rate or an actual rate. The most common method to allocate support department costs is to employ actual rates based on the costs realized during the period