Often the labor for replacing the timing belt and water pump overlap significantly, which is exactly why it often makes a lot of sense to replace both parts at the same time, just as insurance against doing the job twice.
My advice is to ask the shop for itemized information and ask why they are charging you that much. How much is the water pump, and how much additional labor are they billing for the water pump replacement along, versus how much is already being billed for the timing belt. Often, detailed questions will clear up a situation like this, and these are the things you definitely want to investigate if you are worried about being over-billed.