Well, the LE3.91 gears avg $250, about $150 for bearings and shims. That price sounds high for the labor. Takes appx 1 hour to remove the center section, another hour to install, plus the time to setup the rear. Should be able to be done in a 4 hour window. Dont let them charge u GM book labor time.
I should add, i plan to pull mine back out Monday and put a Eaton Truetrac in it. I plan to be around $1300 including the TrueTrac which cost me $585, new replacement 3.91, new bearings, shims, and labor.
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