Costing

13. Capacity Ratio =

$$rac{{{ ext{Number of actual working days in a period}}}}{{{ ext{Number of working days in the budget period}}}} imes 100$$
$$rac{{{ ext{Actual hours worked}}}}{{{ ext{Budgeted hours}}}} imes 100$$
$$rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Actual hours worked}}}} imes 100$$
$$rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Budgeted standard hours}}}} imes 100$$

Detailed SolutionCapacity Ratio =

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