The cost of making an umbrella is divided between material, labour and overheads in the ratio 6 : 4 : 1. If the material costs ₹ 132, find the cost of production of an umbrella.

Given,

The ratio of material : labour : overheads = 6 : 4 : 1

Let the cost of material be 6x, labour be 4x and overheads be x.

Given,

Cost of material = ₹ 132

⇒ 6x = 132

⇒ x = $\dfrac{132}{6}$

⇒ x = 22.

The total cost of production of an umbrella = 6x + 4x + 1x = 11x

= 11 × 22

= ₹ 242.

Hence, cost of production of an umbrella = ₹ 242.