Joseph, if you search the archives, you'll find that there are two different culprits for leaking PS pumps on these cars. One (which Gary probably had done), was the replacement of a small piece of hose and the seal where it enters the pumps itself - an ahour or so of labor, plus minimal parts
...your estimate sounds more like for resealing the entire pump, which needless to say, requires much more shop time. From what I've read the chances of this being the failure is about 50/50, so get another opinion before going this route.
My car has the same leak, but my indie says with confidence that I'll only need the hose/small seal replaced (thank goodness!).
'95 E420 - 'Shadowfax
'92 Volvo 740Turbo Bard
'74 240D - 'Ol' Green
' 4spd Manual 104kmi. (sold
'77 300D - 'Red
' 223kmi (sold)
'75 240D - 'Bianca the Blue Bomber