Problem 3 The David Machine Tool Company is in the doldrums. Production output has fallen to a 10-year low due to a decrease in demand. However, the company expects demand to increase in the near future. Thc company has a nucleus of sklled saiaESle workers who could find employment elsewhere if they were laid off. Three of these workers have been transferred temporarily to the building and grounds department, where they have been doing tasks such as washing walls and swceping floors for the past month. They have carned their regular rate of S13 per hour. Their wages have been charged to the building and grounds departments. The supervisor of building and grounds has just confronted the controller as follows: "Look at the cockcyed performance report you pencil pushers have given me." The helpers' line reads: Actual Results $6,552 Budget $4,032 Variance $2,520 Unfavorable Wages of helpers "This is just another example of how unrealistic you bookkeepers are! Those lool-and-die people are loating on the job because they know we won't lay them off. The regular hourly rate for my threc helpers is $8 each. Now that my regular helpers arc laid off, my work is piling up, so that when they return they'll cither have to put in overtirne or I'll have to get part-time help to catch up with things. Instead of charging me at S13 per hour, you should charge about S6-that's all those tool-and-die slobs are worth at their best REQUIRED: As the controller, what would you do now? Would you handle the accounting for these wages any differently? Why? How would you justify your proposed treatment to the parties involved