that is a fair price for a shop, granted book time may be 3.5 to 4.5 hrs at the shop rate, which in your area is probably 90-100 bucks an hour. The mechanic would probably only make 16-22.00 bucks per flat rate, meaning he would only get 80-100 dollars in his pocket. The job could be done in 1-2 hours by a tech with experience with it.
I just did my Wagon last month and it went fairly easy.
FYI when buying a timing belt always replace the tensioner and use a belt that has the alignment marks ( or mark the old belt and record the teeth in between to make sure the new one goes on correctly( the gears and the rear timing belt cover have markings but they are for general alignment in assembly, if the marks are lined up-gear marks to cover marks, the timing will be one tooth off)