Composite cost D Curvilinear cost E Differential cost. 035. Select cost information for Klondike Corporation is as follows: 1,000 units of 2,000 units of output output Total Cos/Unit Total Cos/Unit Direct materials Rent expense Based on this information: $4,00 .00 ,000 o $4.00 $1.00 $2,000 $2.00 $2,000$ A. Both direct materials and rent expense are variable costs. E 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 co E. Both direct materials and utilities expense are mixed costs