A workshop logs 800 billable hours in a month, while the technicians' total clocked hours in the shop equal 1,000 hours. What is the labor utilization rate, and what does it indicate?

1. 80% labor utilization; indicating significant idle time, slow workflow routing, or inefficient technician scheduling
2. 125% labor utilization; indicating a high level of technician fatigue and immediate need for hiring
3. 20% labor utilization; indicating that the workshop is operating at a major financial profit margin
4. 50% labor utilization; indicating that half of the technicians did not report to work