To add some more information with what I found when "tweaking' the hours to my first two tasks:
Scenario when I assign the first task a duration of 8 hours and the second task a duration of 1 day:
task 1 start date: 3/7/2016 2:00:00 PM task 1 due date: 3/7/2016 10:00:00 PM
task 2 start date: 3/7/2016 10:00:00 PM task 2 due date: 3/8/2016 9:00:00 PM
Scenario when I assign the first task a duration of 9 hours and the second task remains 1 day duration:
task 1 start date: 3/7/2016 2:00:00 PM task 1 due date: 3/7/2016 11:00:00 PM
task 2 start date: 3/8/2016 2:00:00 PM task 2 due date: 3/8/2016 10:00:00 PM
task 3 start date: 3/8/2016 10:00:00 PM
In summary, I think this supports that there is a bug concerning how many work hours are in a day. It does appear that our work hours are set from 2:00 PM - 11:00 PM based on my second scenario where task 1 ends on one day and task 2 begins on another (at the same time task 1 began on the day prior). This indicates that our days are based on 9 hour days rather than 8. The more confusing part however is that if we assign a duration of "1 day", this only applies 8 hours which would be incorrect if our days are based on 9 hour days. Please advise if this is a software bug or if this can possibly be fixed via configuration.