Decorate elves. For pants, roll out yellow, blue, red and orange fondant 1/8 in. thick. Use fondant roller to cut a strip 1 1/2 in. x 6 1/2 in. Use damp brush to attach a contrasting color strip around bottom half of each body.
For suspenders, cut two strips, 1/4 in. x 3 in. to match pants; attach. For pointed collars, roll out dark green and white fondant 1/16 in. thick. Use largest Cut-Out to cut one daisy in each color. Attach collar to top of body; cut fondant away from top hole.
For arms, roll two logs to match each shirt color, 1 1/2 in. long x 3/8 in. dia. Use damp brush to attach to body. For shirts with collars, use small daisy cutter to cut cuffs to match collar; attach. For hands, roll two copper balls, 3/8 in. dia. Shape with fingers and attach. For bow ties, roll two balls, 1/4 in. dia. to match suspenders; shape into teardrops and attach. For knots, roll a ball, 1/8 in. dia.; attach.
Roll a small copper ball for nose, two flattened black balls for eyes and two white balls for eye highlights. Use damp brush to attach. For mouth, roll a black log, 3/4 in. long x 1/16 in. dia.; attach. For hair, roll out brown, yellow and red fondant 1/16 in. thick. Use scissors to cut and shape hair as desired or, for strands of hair, roll fondant logs, 1/8 in. dia. x 2 in. long. Attach with damp brush.
For ears, roll two copper balls, 1/4 in. dia.; shape with fingers and attach. For each hat, roll a ball, 1 1/2 in. dia. to match shirt color. Shape into a teardrop, 2 3/4 in. long. Flatten wide end and roll out to 2 1/2 in. x 2 1/2 in. Attach hats to top of head; cut fondant away from top hole. For hatband, roll out white fondant 1/16 in. thick; cut a strip, 1/4 in. x 7 in.. Attach. For pompom, roll a white ball 3/8 in. dia.; attach.