FTE Factor calculation issue -RUP6

Need help with FTE Factor issue:

I have 2 employees in same BG's, but in different Departments.

At BG Level -- Work day Information fields are blank. We haven't populated anything here.

At Department level, 1 org doesnt have Work day information it is blank.

                               2 org has 40/week.

EMP1 associated with ORG1,  assignment work hours defined as 32/week - shows FTE as 0.8 (Not sure how this is getting calculated).

EMP2 associated with ORG2, assignment work hours defined as 25/week - shows FTE as 1 (incorrect).

Note: We dont have positions defined here.

Profile option HR:FTE Factor is set to "Based on working Hours". at responsibility level.