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In this tutorial, Ted demonstrates how to create a totaling column formula in Excel. He uses an imaginary list of employees and their work hours to show how to calculate the total number of weeks worked and total hours worked. By adding a new column titled "total" at the bottom of the table and using the sum formula in cell B12, the total values can be easily calculated without the need to manually add each individual value. This efficient method saves time and eliminates the risk of errors in Excel formulas.