The price you listed sounds fair. That is what I paid last year for all of the machine work on my engine. They had to boil the block 3x to get all of the crap out. Bored 0.020, line bored, decked the block, new cam bearings installed and reamed, head milled flat, turned and polished the crank, valve guides installed and reamed, replaced two valve seats and cleaned up the rest, surfaced the flywheel and a full balance. Finding a good shop with a staff that knows what they are doing is the real trick. Look for a shop that does mostly truck, industrial and construction engine work. Their clientele demands good work.