. 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 Unfavorable FFOH Cost variance was $300 Favorable FFOH Volume variance was $500 Unfavorable Evaluate the following statements: 1. Planned production exceeded actual production 2. FOH was $1,900 Underapplied Only Statement #1 is true Both statements are false Only Statement #2 is true Both statements are true