To model the problem using an equation, we can express the total cost \( c \) as a function of the number of kids attending the party and the cost per kid.
Let \( k \) represent the number of kids, which is given as 12. Let \( r \) represent the rate per kid, which is \( 16.25 \).
The equation to model the total cost \( c \) is: \[ c = k \cdot r \]
Substituting the values of \( k \) and \( r \): \[ c = 12 \cdot 16.25 \]
Now let's solve for \( c \): \[ c = 12 \cdot 16.25 = 195 \]
Therefore, the total cost for the group is: \[ \boxed{195} \]