audisnawb... I'm with Timothy.
Something doesn't add up here.
They are charging you $1213 for the retro fit of the LN bearing kit which costs about $762.
That leaves $451 for 13,6 hours of labour = $33 per hour. Thats seems like a very cheap labour rate !!
I think they are charging you the $1213 for labour ($89-20 / hr which sounds about right) but parts will be on top of that....
Or it could be that the parts are costing $1213 (LN bearing + installation kit + RMS + sundries etc,) with 13,6 hours of labour added to that.
Of course, I could be wrong, but personally, I would confirm with the shop and get a written quote before you get a nasty surprise......