Combine flour, baking powder, salt, & sugars until well blended.
Add butter. Add in vanilla extract. You should have a dough at this point. If using a stand mixer it will form a ball on your paddle.
Divide into two equal parts.
Add the food coloring. I added quite a bit. It will darken and brighten when it rests. Remember this especially when choosing red.
Roll out your dough between two pieces of wax paper. Do not remove from paper.
Repeat with other color dough. Slide both unto a cookie sheet , refrigerate for about 1 hour.
When firm remove top film from both layers. brush one with water lightly. Slap together and rub lightly to make them stick together.
Allow to loose its firmness lightly. If it's too hard it will crack when you roll it. When a bit softened it will roll nicely. Use the now top layer of wax paper to help you roll it.
Return to cookie sheet. Pour out sprinkles and roll over until the outside is covered. The bigger the sprinkle the better. I used tiny ones and it took two bottles.
Wrap back up with bottom layer of wax paper. Chill until firm in fridge.
Remove from paper and slice in 1/4-1/2 inch pieces and place on parchment lines cookie sheet. Cookies will spread so leave space.
Bake at 350 for 15 minutes. Let cool for 5 minutes after baking and then remove to rack. Store in air tight container.