What's up with my Inspection 2 ??

[TWALK]

I dropped my 2002 3.0 X5 off at the dealership last night because the Inspection indicator came on last week (58k miles). The dealer is in Sterling, VA.
I received a call this morning to let me know that the service was not covered by any warranty (which I was aware of) and that it was a very comprehensive look at the car (oil, filter, differential fluid etc...) and that it would cost just under $1300 after parts & labor.

I've read in the past that $500-$700 was a pretty standard Inspection 2 expense, why the heck are these guys saying it will be double that?