You can stack them however you wish. I would do a step by step for you but I have to leave for Mesa in about 10 minutes. So here is what you do:
I'll have 3 4x4inch blocks for you (they'll be sanded), then you'll want to paint each one, this will probably take about 30 minutes so you can do touch ups and let them dry. Then you press the vinyl on and paint some varnish over them and voila! Some super cute holiday decorations for cheap! They would even make a fun gift! The vinyl costs 4.80$ and the paint, wood and varnish cost .70 cents. So it comes to 5.50$.