Hmmm... you're selecting column A for the replacements and then formatting column B to "0.00" ???
Assuming the alpha cost codes are in column A and you want the actual cost in the adjacent column B cell, this will do it.
Perhaps there's something you can use or adapt.
Code:
Sub ConvertToCost()
Dim cel As Range
Dim str As String
Application.ScreenUpdating = False
Application.Calculation = xlCalculationManual
On Error Resume Next 'in case value doesn't convert
For Each cel In Sheets("Sheet1").Range("A2:A" & Sheets("Sheet1").Cells(Rows.Count, "A").End(xlUp).Row)
If cel.Value <> "" And Not IsNumeric(cel.Value) Then
str = LCase(Trim(cel.Value))
cel.Offset(0, 1).Value = Replace(Replace(Replace(Replace(Replace(Replace(Replace(Replace(Replace(Replace _
(str, "c", 1), "h", 2), "a", 3), "r", 4), "l", 5), "e", 6), "s", 7), "t", 8), "o", 9), "n", 0) / 100
cel.Offset(0, 1).NumberFormat = "0.00"
End If
Next cel
On Error GoTo 0 'turn error check back on
Application.Calculation = xlCalculationAutomatic
Application.ScreenUpdating = True
End Sub