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QUESTION 2 Margie Law Firm currently processes payroll in its accounting department. The monthly costs of this processing are: Supplies $475 Labor 900 Allocated foxed

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QUESTION 2 Margie Law Firm currently processes payroll in its accounting department. The monthly costs of this processing are: Supplies $475 Labor 900 Allocated foxed overhead 450 Total monthly cost $1,825 Margie Law Firm could use a payroll processing firm instead, which would cost $1,350 per month, but the firm would provide all supplies. If Margie used the outside firm, the accountants who currently process payroll would be reassigned to other accounting tasks. How much would monthly costs be affected if Margie switched to the payfoll processing firm? O Decrease $225 O Increase $875 Increase $225 Decrease $475

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