Following data is available for XYZ Ltd. for the month of February 2024: Standard working hours 8 hours per day of 6 days per week No. of weeks in…

(i) Actual Hours worked Actual Usage of Budgeted Capacity Ratio = (Actual working Hours / Budgeted Hours) × 100 86% = (Actual working hours ÷ Budgeted hours) × 100 Budgeted hours = 125 workers × 8 hours × 6 days × 4 weeks = 24,000 hours Actual hours = 24,000 × 86% = 20,640 hours (ii) Standard hours for actual output Efficiency ratio = (Standard Hrs / Actual Hrs) × 100 110% = Standard hours ÷ Actual hours Standard hours = 20,640 × 110% = 22,704 hours (iii) Activity ratio = (Standard Hrs / Budgeted Hrs) × 100 = (22,704 ÷ 24,000) × 100 = 94.6% (iv) Standard capacity usage ratio = (Budgeted Hours / Max. possible hours in the budgeted period) × 100 = {24,000 hours ÷ (150 workers × 8 hours × 6 days × 4 weeks)} × 100 = (24,000 ÷ 28,800) × 100 = 83.33%