Select cost information for Klondike Corporation is as follows:

1,000 units of output 2,000 units of output Total Cost/Unit Total Cost/Unit Direct materials $4,000 $4.00 $8,000 $4.00 Rent expense $2,000 $2.00 $ 2,000 $1.00 Based on this information: A. Both direct materials and rent expense are variable costs. B. Direct materials is a fixed cost and rent expense is a variable cost. C. Both direct materials and rent expense are fixed costs.. D. Direct materials is a variable cost and rent expense is a fixed cost. E. Both direct materials and utilities expense are mixed costs