In a small bowl, cream butter and powdered sugar until light and fluffy. Beat in egg and extract.

Combine flour and salt; gradually add to creamed mixture and mix well.

Divide dough in half. Add 6-7 drops of food coloring to one half. Shape tablespoons of each color of dough into 4-inch ropes. Place ropes side by side, lightly press ends together and twist. Place on ungreased baking sheets and curve to form canes.

Bake at 375 F. for 9-12 minutes or until lightly browned. Combine crushed candy canes and sugar. Sprinkle over cookies immediately after removing them from the oven. Cool for 2 minutes before removing from pans.