I know exactly what Wally is doing, He was in mid swallow when Alice asked the question and was actually blowing coffee out his nose.
We all have Mom's / Wives and its our duty as a male to put on that hideous what ever just long enough for someone to witness that it happened. Having a woman as a witness is extra points. On second thought, i think he wore it to the office just to make Wally loose his coffee.
That Alice, such a charmer. A regular riot...bang, zoom, to the moon!
When confronted with colleagues like this the best reply is further sarcasm, e.g.: I think I missed the part of this conversation where I gave you the impression that I care what you think.
I've wondered if Alice's hairstyle -- in the symbolic world of Dilbert -- isn't a subtle indication that she's management material.