The following are the three budgetary control ratios:

Activity ratio: It is a measure of the level of activity attained over a period of time. It is obtained by expressing the number of standard hours equivalent to the work produced as a percentage of the budgeted hours.

Activity ratio		Standard hours for actual production
	=		x	100
		Budgeted hours

Capacity Ratio: This ratio indicates whether and to what extend budgeted hours of activity are actually utilised. It shows the relationship between the actual number of working hours and the maximum possible number of working hours in a budget period.

Capacity Ratio		Actual hours worked
	=		x	100
		Budgeted hours

Efficiency Ratio: It indicates the degree of efficiency attained in production. It is obtained by expressing the standard hours equivalent to the work produced as a percentage of the actual hours spent in producing that work.

Efficiency Ratio		Standard hours for actual production
	=		x	100
		Actual hours worked