Rabbit is quite easy to dye using RIT or KoolAid. I do small batch dying in aout 2 cups of water heated in the microwave. I do small batches since I am a hobby tier and don't need/want large quantities of material. In small batches it is harder to measure the dye with great precision, so it can be difficult to repeat colors exactly. Since the dye particles are not evenly distrubuted in the dry powder you will get better precision of you convert them to concentrated liquids by adding some water. You will need to measure dye in 1/16 or 1/8 a teaspoon quantities. I use an eye dropper, just see how many drops of plain water it takes to fill a teaspoon and adjust accordingly.

Note: After dying the rabbit hide will come out stiff, not soft like it is on the hide. You can still tie with it, and you can re-soften it a bit by working the strip over the sharp corner of a table. The same thing happens to commercial zonker strips once you get them wet.

There is lots of info on cutting rabbit strips, search here or on YouTube... The basic principle is to clamp the hide in some kind of device (like a clip board) to stretch it tight and to cut from the skin side using a homemade cutter made of multiple razor blades and spacers. The hide needs to be stretched so the fur side does not touch anything during the cut, otherwise the fur is damaged either side of the cut.

I always thought the cross cut strips were cut at a 45 degree angle, not 90. In this way when the strip is spiral wrapped at a 45 degree angle the fur lays straight back along the hook shank.