Explanation:
Factory cost refers to the total cost of producing goods in a factory and is made up of:
- Prime Cost (which includes):
- Direct Materials
- Direct Labour
- Direct Expenses


Factory Overhead (also called manufacturing overhead), which includes:
- Indirect labour
- Indirect materials
- Factory rent, utilities, maintenance, depreciation on factory equipment, etc.

So, if you exclude prime cost, what remains is factory overhead.

Therefore, factory cost excluding prime cost = Overhead