u Question Vaughan Company had the following variances for the year: DM Cost variance was $200 Unfavorable DM Efficiency variance was $500 Favorable DL Cost variance was $100 Unfavorable DL Efficiency variance was $800 Unfavorable VFOH Cost variance was $800 Unfavorable VFOH Efficiency variance was $900 Favorable FFOH Cost variance was $300 Favorable FFOH Volume variance was $500 Favorable Evaluate the following statements: 1. Planned production exceeded actual production 2. FOH was $100 Underapplied Both statements are false Both statements are true Only Statement 2 is true Only Statement #1 is true