The software you're using is setting the bitrate too high. It's setting the bitrate higher than that of the source, which is just bad.
Assuming the audio track is 128kbps at 88 minutes, it would be 80.5MB. That would put the original video bitrate at around 1000kbps (717.5MB). 80.5 + 717.5 = 798MB (818,000 KB is closer to 798MB, not 818MB).
Assuming the software keeps the original audio track, the new video bitrate would be about 1083kbps. 844MB (not 865MB) - 80.5MB = 763.5MB, or about 1083kbps.
So, you definitely want to go lower than 1000kbps.
Try around 700kbps on the video track, and make it variable bitrate. The video track would be about 440MB at that bitrate. I don't know what bitrate your audio is, but it'd probably be another 80-120MBs.