An outdrive service usually means pulliing the outdrive, checking gears, realigning, lubing, etc. If they did that service it's probably worth what they charged. As for the other stuff.... No idea.

By your description of his comments. I'd suggest trying to get a full itemized list of parts, labor, etc. That way you'll have a better idea what was done. Labor adds up pretty darn quick. Get a print out of the bill and then do t he math.

If all is as you say, I wouldn't be too happy with that. Rick's Master Marine in South Park has always been my go to repair shop. Never felt like they took advantage of me and always tried to help me trouble shoot the problem first.