Unless otherwise specified in your contract with an editor, formatting of your manuscript is NEVER included with editing services. Sometimes the terms "formatting" and "layout" are used interchangeably, but they are different things. Formatting is generally just adjusting text fonts, margins, etc. to meet specifications. Layout is generally a more extensive service that often involves graphic design, image placement and resizing text wrapping around images, and a whole lot more. As you might expect, layout is usually more expensive, too. If your book is primarily just text, formatting can often be a sufficient service to get your book ready for printing and production. But if you have a lot of images and other visual styling, layout is way to go. Hope that clarifies the issue.