Preheat oven to 325 degrees F. In a medium bowl stir together flour and powdered sugar. Using a pastry blender, cut in butter until mixture resembles fine crumbs and starts to cling. Gently knead into a ball. (The mixture may appear crumbly at first.) On a lightly floured surface roll dough to a 12 x 5-inch rectangle. Sprinkle with red decorating sugar.
Cut dough crosswise into twelve 1-inch-wide strips. Arrange 1/2 inch apart on two ungreased cookie sheets. Bake 15 to 18 minutes or until edges begin to brown. Cool on sheets on wire racks 5 minutes. Transfer cookies to wire racks; let cool completely. Store in an airtight container at room temperature up to 1 week or freeze up to 3 months.