For a service like that, $350 sounds about right. At about $90-100 an hour, thats pretty good.
As for the bushes, go Whiteline or Nurathan. We use Nurathane (However you spell it) from Repco, but these cars are all stock. Whiteline would be your best bet. Better performance then stock as well.
As for your lowered springs, the shocks arent used to such reduced travel, so it will wear them out quicker. However, a car that old, its highly unlikely it's going to cause much trouble yet. Keep it until the coil overs arrive.
And Tristian is right, the bushed have nothing to do with the stuts and shocks. There are:
Strut bushes
Sway bar bushes
Sway bar link bushes
Thats the most common ones, gotta stick my head under my car to see what other ones our cars have, but they dont usually wear for a while. Serviced a 1983 WB Statesman (Brian Burkes old car!!) the other day, and all the stock bushes were still in place, although I did replace half of them. Just goes to show how long the stock ones actually last. Hope that answers some question for you. Any more, just talk to me on MSN.