Factory costs excluding prime cost is called overhead.
Prime cost refers to the direct costs involved in producing a product, such as the cost of raw materials and labor. Factory costs, on the other hand, refer to the indirect costs of production, such as rent, utilities, and maintenance of equipment. When we subtract prime costs from total factory costs, we get overhead. Overhead is a significant expense for most manufacturing businesses, and it's important to track and manage it effectively to ensure profitability.