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Ted demonstrates how to create a totaling column formula in Excel using a spreadsheet with employee information. By multiplying weeks worked by hours per week, he calculates total hours. To find the total number of weeks and hours for all employees, a new column labeled "total" is added at the bottom of the table. Using the sum formula in cell B12 simplifies the process, eliminating the need for manual addition of individual cells. Excel offers a more efficient way to handle calculations.