Well, I actually have to thank the community for not answering my question, because I got to learn a lot about Entity Framework, Linq (and its limitations with Entity Framework in .NET 3.5) and a whole bunch of other things to answer my own question.
What I ended up doing was create an Entity Model of my Database using Entity Framework and thus created the Business Objects I needed to organize my data. I learned that my data isn't designed in a hierarchy, rather there are associations such as Workstation and User that each time entry records contains. I used a Linq-to-Entities query to select the data I wanted and flattened it out using its associations (example Time.Workstation.Name or Time.User.FullName) so that in the end, my projected object contained all the data I wanted in each row of my report. My projected object was actually a POCO I created for the purpose of holding the queried data and making it available as a datasource for my rdlc report.
Finally I bound the results of my query to a Reportviewer's ObjectDataSource which connects to the rdlc file that I was able to define to my liking: i.e. Either displaying the Workstation first or the User, or whatever associated information I wanted to display.