I am always aghast at how much fabric it takes to make a rag time. I think it feels like so much more because you are cutting both the front and the back at the same time. I cut one out this weekend and also did a middle layer of cream flannel.
bbair if you do some searching on the board you will find lots of threads about rag quilts. Two topics that have been discussed since the Holidays are 1" verses 1/2" seam allowances and binding. I don't know if you saw those.
best of luck and don't forget to post pics when you are done :)