Following data is available for XYZ Ltd. for the month of March 2025: Standard working hours 7 hours per day of 5 days per week Number of weeks in…

(i) Actual Hours worked Actual Capacity Usage Ratio = Actual Hours worked / Max. possible working hours in a period ×100 65% = (Actual working hours ÷ Maximum Capacity in a budget period) × 100 Maximum Capacity in a budget period = 60 workers × 7 hours × 5 days × 4 weeks = 8,400 hours Actual hours= 8,400 × 65% = 5,460 hours (ii) Standard hours for actual output Activity ratio = Standard Hrs / Budgeted Hrs ×100 125% = (Standard hours ÷ Budgeted Hours) × 100 Budgeted Hours = 42 workers × 7 hours × 5 days × 4 weeks = 5,880 hours Standard hours for actual output = 5,880 x 125% = 7,350 hours (iii) Standard capacity usage ratio = Budgeted Hours / Max. possible hours in the budgeted period ×100 = (5,880 hours÷ 8,400 hours) × 100 = 70% (iv) Actual Usage of Budgeted Capacity Ratio = Actual working Hours / Budgeted Hours ×100 = (5,460 hours ÷ 5,880hours) × 100 = 92.86%