I generally use heat & bond lite ( or misty fuse on lightweight fabrics) for my fusible; fuse to backside of fabrics, cut out shapes, place, fuse, then I set my machine to a small blanket stitch to zigzag and stitch around each edge.

I would also consider doing the applique turn under (using freezer paper) and then machine quilting with a buttonhole stitch. Good luck in giving an estimate. This is going to be a big project.