BandHub Pte Ltd is a company incorporated in Singapore and adopts the Singapore Financial Reporting Standards (SFRSs). It provides voice and data services as well as sells handphones. On 1 January 20X1, BandHub enters into sales contracts with two different customers: Customer X and Customer Y. Both customers choose the same handphone and the same monthly service plan. The standalone selling price for the handphone is $480 (cost of the handphone is $350) and the standalone selling price of the service plan is $60 per month. Customer X purchases the handphone for $480 and enters into a cancellable contract to receive the voice and data services for $60 per month. Customer Y enters into a 24-month service contract for $60 per month and pays $200 for the handphone.

(a) Determine the allocation of the transaction prices for both customers and the revenue to be recognised for the month of January and February. Explain your answers using FRS 115 - Revenue from Contracts with Customers.

(b) To activate the voice and data services, Bandhub Pte Ltd charges the customers an upfront, non-refundable fee of $12. How should this activation fee be treated under FRS 115 - Revenue from Contracts with Customers.