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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, a total hours formula is already in place. To calculate the total weeks and hours for all employees, a new "total" column is added at the bottom. By using the SUM formula in cell B12, the total can be easily calculated without manually adding each cell. This method saves time and avoids the tedious task of individually adding cells in Excel.