I just completed making two in my Magic Forges, and can confirm that the Trollish Weapon Rack is only a 1x1 decorative (non-functional) item.
For kingdom decorators, I highly recommend making a 2nd Rack while the first one is crafting since the crafting option disappears once you collect the Rack. As shipower mentioned, the rack costs 50 gems in Market-->Decorations-->Town, so you can save yourself 50 Gems by making a 2nd rack while you can in the Forge.
For future quests...., I highly recommend stocking up on Stout Axes. I already had a couple in my inventory from a previous quest, and even after making 2 Racks, I still have 10 Stout Axes left.