If valve springs, piston, rings, and maybe a hone was the only thing then ya that sounds kinda high to me. I dont ever have that kind of work done though, I just do it myself so I dont know what he was charging for labor and whatever else. A piston and rings is about 180, springs I wouldnt think more than 70 or so and last time I had a cylinder honed it cost me 35 to have done. Something doesnt add up to me.
As for engine break in, everyone seems to have there own way, I personally like to heat cycle it first off. Run it for about 15 minutes. Then let it cool. Run it once more for 15 minutes then let it cool, let it idle only both times of course. Then after that go ride the piss out of it to create some high load situations to allow the rings to seat properly. No steady throttle, vary the throttle the whole time. My dad manages an airport and after they rebuild an engine they run them WOT after they rebuild them to seat the rings good, so if an airplane uses that technique it must be a pretty decent method.
Forgot to post this link, pretty good break in article:
Break in Secrets