Ok, I feel the need to interject my two cents. When making a rag quilt, or rag type apparel, the batting is cut an inch smaller. This allows for the 1/2" seam allowance. If you are using a 1" seam allowance, then cut the batting 2" smaller.
Let me give you an example. If my fabric, let's say flannel, is cut 8" square, I then cut my batting 7" for 1/2" seam or 6" for 1" seam. Lay out a square of fabric, center the batting, top with second piece of fabric. Now sew from corner to corner making an X thru the center of the block. When all your blocks are sewn in this manner, then you sew them into rows. Your seam allowance does not contain any batting. I clip those seams about 1/4" apart, making sure to stop short of the actual seam stitching. Trust me, you don't want your quilt to come apart. As you will be cutting thru 4 layers of fabric, regular sewing shears don't work well. I have some spring loaded clippers from Fiscars. Much less work and less tiring on the hands.
Final tips on rag quilts. Warm and Natural batting works well and washes fine if you follow the above method of sewing the X. The size of the block will be determined in the above example by the size of the batting. In my example, I cut 6" of batting for 1" seam and 8" fabric. Therefore, block will be 6" finished. After washing quilt, place in dryer and clean lint trap every 10-15 minutes. I have often resorted to taking to laundrymat and using their dryers. Some rag quilts like to be wet down and dried a second time. Hope you find this information helpful.