A look inside Hollywood and the movies incorporating Outtakes, Cinefile and Production Chart. : TALK OF THE TOWN : Maybe Some CPA’s Should Review It

Even Roger Smith’s barber wants to know: Will “Terminator 2” really be the most expensive movie in history, topping out at as much as $110 million?

“We’re amused that everyone is so concerned about our profits,” the Carolco executive vice president says of the rumor, which started at $60 million several months ago and seemed to jump another $5 million every time some agent circulated it at lunch.

But much as Carolco executives would like to laugh off the rumors, there’s no doubt that “Terminator 2,” which opens July 3, will rank among the most expensive films Hollywood has ever made.

Sources close to the company estimate the direct production cost at upwards of $75 million, which includes $10 million to secure the “Terminator” rights from Hemdale and Orion (which produced and distributed the first film) and a $14-million Gulfstream jet bought for star Arnold Schwarzenegger as his salary. Interest costs add another $5 million to $10 million to the overall budget, and studio overhead will come to several million more.

Tri-Star, which is distributing the film, can probably be expected to kick in another $20 million to market it.

Carolco officials refuse to say how much the film costs. But Smith insists that “Terminator 2”--which is laden with state-of-the-art special effects--ran only “modestly” over budget. A contingency fund equaling 10% of the budget was drained to cover the overage.

“This is not a picture that started cheap and then ran wildly over-budget,” Smith says. “It started expensive,” with Schwarzenegger, a major director (James Cameron) and a hot property (the first “Terminator” was a surprise hit), he added.

Larry Kasanoff, head of Cameron’s production company, Lightstorm Entertainment, said another reason for the high cost was the summer opening; the super-tight production schedule meant extra crews working overtime to get the film ready in time.

“Terminator 2” is an expensive film, Kasanoff acknowledged, but “we’re not flying caviar in from the Soviet Union. The money’s all on the screen.”

Smith is quick to point out that because Carolco finances its films by pre-selling the rights to foreign markets, his company is not exposed for the full cost. He added that despite all the talk about the high cost of “Total Recall,” analysts have estimated that it yielded about $35 million in profits for Carolco.

“We are extraordinarily happy with (“Terminator 2”),” Smith adds. “We want people to review the film, not (its) budget.”