I'm certainly no expert, but that seems ridiculous. I think the clutch is 7-8 hour job and the head gasket job maybe double that? Subtract parts (maybe $1000?) and you get a stupid ridiculous hourly labor rate. Typical mechanic labor rates are going to range from $80-120 per hour depending on the location. Even with $1500 in parts in your scenario the dealer is still charging a whopping $230/hr.
I would tell them to