To calculate the average labor utilization, we need to first calculate the total capacity of the process.
Total capacity = First resource capacity + Second resource capacity
Total capacity = 21 applications per hour + 40 applications per hour
Total capacity = 61 applications per hour
Next, we calculate the labor utilization as a percentage:
Labor utilization = (Demand / Total capacity) * 100
Labor utilization = (16 applications per hour / 61 applications per hour) * 100
Labor utilization = (0.26229508196) * 100
Labor utilization ≈ 26.2%
Therefore, the average labor utilization is approximately 26.2%.