Riordan Manufacturing Amended Budget - 91615

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Riordan Manufacturing Amended Budget



Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company's research and development is done at the corporate headquarters in San Jose. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers (Apollo Group, 2010).

This paper examines and amends Riordan Manufacturing, Inc.’s Consolidated Operating Budget – Cost Center IT for Fiscal Year 2004 (Apollo Group, 2004). An operating budget is a detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period (usually one year). It generally consists of several sub-budgets, most important one being the sales budget which is prepared first. Since an operating budget is a short term budget, capital outlays are excluded because they are long-term costs (

 Spending is increased on items related to hardware, software, and outside IT support services by four percent, in addition to decreasing the overall budget by two percent. A revised budget is presented, along with changes in rational made to the budgeted amounts.

Current Budget

            The current budget for Riordan Manufacturing is presented in Table 1: Consolidated Operating Budget – Cost Center IT for Fiscal Year 2004, which lists all compensation and other expenses.





  Wages & Salaries

 $ 1,111,992


 $ 255,758


 $ 200,000