A VR game development studio hired highly experienced, expensive freelance coders to complete a project instead of using their standard junior staff. As a result, the project was completed much faster than the standard time allowed.

What combination of labor variances would you expect to see?

The Labor Rate Variance compares the actual hourly rate paid to the standard rate. Hiring expensive freelancers results in an Adverse rate variance. The Labor Efficiency Variance compares the actual hours worked to the standard hours allowed. Because the experienced coders finished the project faster (fewer hours), this results in a Favorable efficiency variance. These two variances often move in opposite directions in such scenarios.