It sounds like a fair, but not cheap deal to me. Labor rates are high here (usually $85-100/hour) but the parts are pretty much the same. If you know this guy and he is willing to guarantee the work then it was probably a good deal. The used compressor did save you a lot of money and most mechanics don't like to install them if they guarantee their work. By the way, in the future if you have AC problems I'd recommend Alouis Radiator on Divisadero. They are very reasonable and always call with a final estimate before they start the work. I have no vested interest with them, just several good experiences.
VWBuge: Nothing against the Keystone State but I grew up in Western New York and I'd pay $200/hour labor rates to live here. What we pay in added labor we save in heating oil.