Final answer:
The effect on the allocation of cost to Grade A and Grade B peaches depends on their respective prices per pound. If the price of Grade A peaches is higher, the cost allocation to Grade A will be higher. If the price of Grade B peaches is higher, the cost allocation to Grade B will be higher.
Step-by-step explanation:
The effect on the allocation of cost to Grade A and Grade B would depend on the price per pound for each grade of peaches. In order to determine the allocation of cost, we need to know the pricing information for Grade A and Grade B peaches. If Grade A peaches are priced higher than Grade B, then the cost allocation would be higher for Grade A. Conversely, if Grade B peaches are priced higher, then the cost allocation would be higher for Grade B.
For example, let's assume that Grade A peaches are priced at $2 per pound and Grade B peaches are priced at $1 per pound. In this case, the cost allocation for Grade A peaches would be 2,000 pounds x $2/pound = $4,000 and for Grade B peaches it would be 4,500 pounds x $1/pound = $4,500. Therefore, the cost allocation would be higher for Grade B.