To be honest, it is hard to say.
XXXX could mean $1250, where I'd say you're getting a bargain; or it could mean $9860, where I'd say you're getting ripped off.
To be honest, I don't like studios that work per hour. The per hour basis requires designers and programmers to work under huge pressure to generate good results with as little time as possible. You also have to trust that the designer is actually designing during all the hours you're paying.
I strolled through a design studio (unrelated to adult) that works exclusively on the hour basis and half of the guys there had IM clients open, writing emails, etc. I don't know if they were on the clock or not, but I can totally see it happening while on the clock.
The only reason to go on the hourly basis is if the client doesn't have a clue of what he wants and you can see that he's going to be requesting frequent changes of direction. Even then, the purpose wouldn't be to make more money from that client, but to discourage him from doing endless
scope creeping so you can move on.
The other thing about working for hourly rates is that the client is often left with the feeling that he's getting ripped off because he doesn't know why it too the studio so long to complete a certain task. In his mind, things are simpler; in reality, they aren't.
A third reason is that many times the client runs out of money and can't pay for any changes he wants done and it can lead to dissatisfaction with the delivered product, ensuring that he never comes by again.
Last, and I can't sustain this with hard facts, I think that studios who charge by the hour lack passion for their work as the pressure to create a certain amount of pages per hour reduces greatly the possibilities.
Of course, none if this means that the per-project basis can't have similar final pricing or deadlines.
Go with someone that charges you by project if able. I'd offer you our services as an alternative, but our plate is full for the rest of the month, so this is totally uninterested.