PCC Jewelers is a Kolkata-based jeweler that has been manufacturing customized gold and silver jewelry over 80 years and has an industry-wide reputation for state-of-the-art designs and quality standards. Due to the seasonal demand during the months from September to February, the company maintains a policy to lay off some goldsmiths as soon as there is insufficient work to keep all of them busy and to rehire them when demand warrants. Because of this lay-off policy, the company now has poor labor relations and finds it difficult to hire good goldsmiths. Consequently, the quality of the products has been declining steadily.

The production manager has proposed that the goldsmiths, who earn ₹5,000 per month, be retained during the slow periods as production assistants cum intra-departmental security personnel, for which the company pays ₹3,000 per month per person hired from an outside agency. 

You, as controller, must decide the most appropriate accounting procedure to handle the wages of the goldsmiths doing the alternative work. What department(s) should be charged with this cost, and at what rate? Discuss the implications of your plan.