Find another dealer. My dealer charged me $155 (discounted) for the fob and $99 for the programming. The dealer has to pay $50 each time they program the FOB's (all need to be done at same time) Technician charge for time was $49.
If they want your business they need to give you a break or go to another. BTW... Audi uses the same software to program FOBs. They can do it also.
When buying our atlas, the dealer told us while trying to push the extended warranty that a new key fob was $500 (somehow the extended warranty paid for this). No idea of the true cost, but we said we’d take our chances.