You may also use recode from car.  This would work with both factor and character class
library(dplyr)
library(car)
res <- mutate(df1, Fruit= recode(Fruit, "'apple'='lemon'"))
res
#    Fruit Cost
#1  lemon    6
#2  lemon    7
#3 orange    3
#4 orange    4
str(res) 
#'data.frame':  4 obs. of  2 variables:
# $ Fruit: Factor w/ 2 levels "lemon","orange": 1 1 2 2
# $ Cost : int  6 7 3 4
Changing the class to 'character'
 df1$Fruit <- as.character(df1$Fruit)
 str(mutate(df1, Fruit= recode(Fruit, "'apple'='lemon'")))
 #'data.frame': 4 obs. of  2 variables:
 #$ Fruit: chr  "lemon" "lemon" "orange" "orange"
 #$ Cost : int  6 7 3 4
data
df1 <- structure(list(Fruit = structure(c(1L, 1L, 2L, 2L),
.Label = c("apple", 
"orange"), class = "factor"), Cost = c(6L, 7L, 3L, 4L)),
.Names = c("Fruit", 
"Cost"), row.names = c(NA, -4L), class = "data.frame")