Place bacon in a large, deep skillet. Cook over medium high heat until evenly brown. Drain, crumble and set aside.
Preheat oven to 400 degrees F (200 degrees C). Lightly grease muffin pan.
In a large mixing bowl, combine flour, sugar, baking powder, salt, garlic powder, chives, parmesan cheese, cheddar cheese and crumbled bacon. Combine the egg, milk, cream of mushroom soup and vegetable oil. Mix into the dry ingredients and stir together just to moisten.
Spoon the batter into prepared muffin pans and bake at 400 degrees F (200 degrees C) for 20 to 25 minutes, or until a toothpick inserted into a muffin comes out clean.