12. Cleves Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Cleves worked on two jobs in August. Data are as follows:

Job 81 Job 82 Balance, 8/1 $42,000 $35,000 Direct materials 28,000 26,000 Direct labor 32,000 30,000 Engineering design 1,200 1,000 Purchasing 1,600 1,750 Other overhead 16,525 14,250

Which of the following would be true if Job 81 required no engineering hours? a.The engineering applied to Job 82 would increase by $1,200. b.The engineering applied to Job 82 would be zero, and the cost of Job 82 would decrease by $1,200. c.The engineering applied to Job 81 would be zero, and the cost of Job 81 would decrease by $1,200. d.The engineering applied to Job 81 would increase by $1,200.