You should be able to check the ball joints on the control arms by jacking up the front, getting under there with some big channel locks and jiggling them. If they're loose, the the arms have to come out (though I think the outer ball joints might be replaceable on the e36, but don't quote me on it.)
Anyway, if the ball joints are good, then the bushings are probably the culprit - they are more likely to be toast than the ball joints anyway.
As for labor, you really need to remove the entire arm to replace the bushings, so it's a question whether you want to replace the arms while you've got them out.
While you're jiggling things around, give the sway bar links and tie rod ends a shake. Alignment difficulty can be shot tie rods, too.
Good luck.
1995 530iA - 295,000 miles
1988 325i convertible - 180,000 miles