Possible dropdown lists (Excel)

Trying to create a simple worksheet to calculate hourly billing allowable for a lawyer. I am working in excel and wonder if there is a way to #1- create a dropdown list within a dropdown list. In other words, pick an item in a list, which opens up another list to choose from. #2-When this item is chosen, that specific text would be calculated as a number in another cell.
Thanks… for more info email MTulloch@polarnet.ca