When wire is in the form of rectangle-
Length of rectangle (l)=40cm
Breadth of rectangle (b)=26cm
Perimeter of rectangle =2(l+b)
⇒ Perimeter of rectangle =2(40+26)=132cm
Area enclosed by the rectangle (A1)=l×b
⇒A1=40×26=1040cm2
When the wire is in the form of circle-
Perimeter of circle will be equal to perimeter of rectangle.
∴ Perimeter of circle =132 cm
⇒2πr=132
⇒r=1322×722=21cm
Thus the radius of circle is 421cm
Now,
Area enclosed by the circle (A2)=πr2
⇒A2=227×(21)2=1386cm2
∵A2>A1
∴A2−A1=1386−1040=346cm2
Hence the circle encloses more area than rectangle by 346cm2.