For this exercise, I edited a pre-designed Illustrator file, exported it to Photoshop and then applied various filters to the layers to get this effect:

I used the bevel and emboss filter in various degrees to get the depth to this badge-like design. I also applied texture of the yellow circle and blue rectangle. The badge, blue circle and blue rectangle all have beveling filters as do the small yellow dots (but I adjusted the filter to have it look like the dots are pushed in).

Here is the original, given to us by the instructor: