Welcome from the Mid-West.
By surround, I'm thinking you mean the border, which is like a frame around the quilt. There are no rules, or even guidelines for border dimensions. Just whatever is pleasing to YOUR eye. It's your quilt, you make the rules! I would just do the center, 5 dogs, 4 kennels then add a narrow border of a strong contrasting color. (this is often called a stop border) Then add a wider border & applique some of those dog bones on it. If this brings it out to your finished size, great, if not just add another border, choosing a size that is different from the other 2.
as far as how to cut the border, if there is an obvious print or a directional print, you can cut it as you describe from both the width and length of the fabric. You can also just cut it in one direction. Again, your quilt, your rules. complete the top then lay it on the uncut border fabric to determine what looks best to you.
Last edited by PaperPrincess; 11-04-2016 at 04:41 PM.