If it is the first service the car has ever had, I wouldn't be surprised at that sort of price, as they should be doing rather more than ordinary A-service things. The very first service is pretty crucial, I would have thought. And at this stage in the car's life it's worth sticking with the dealers -- warranty and all that. It's certainly worth your while going over everything with a fine-tooth comb and building up the list of things you want fixed or checked.
Aren't dealer servicing prices standard across the country these days? That looks like a two-hour job to me.