Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $10,000,000 bond issuance, the Electric Mixer Division used $7,000,000 and the Electric Lamp Division used $3,000,000 for expansion. Interest costs on the bond totaled $750,000 for the year.
-Which corporate costs should be allocated to divisions?

A) fixed costs only
B) variable costs only
C) neither fixed nor variable costs
D) both fixed and variable costs