am using my imac’s internal microphone to record vocals - the quality was better than expected
I have shot temporary theatrical tracks with my Mac built-in microphone and regularly use my Mac Stereo Line-In for paid gigs. Yes, they do work very well.
However, Macs now have microphone processing and as a fuzzy generality, it’s designed for speaking voices and hates music.
Apple (upper left) > System Preferences > Sound > Input. I’m not on a machine with a microphone, but there may be more options in that panel than you’re used to.
…
…
Here it is. [_] Use Ambient Noise Reduction (de-select).
That might be handy if you’re trying to Skype from a train station, but not for performance art.
Working up the list. If you’re overdubbing, there is an Audacity setting for Recording Latency. In English, it automatically lines up the new tracks with the old ones, but you have to set it because the settings are different for each machine.
Now you’re going to hit something I don’t know. I wrote the original overdubbing tutorials, but I used external sound devices and not the built-in microphone. My goal was a universal class applicable to anybody with any computer.
I’m thinking about this as I go. I guess you could jam your headphones down to the microphone. My microphone is just to the left of the left-hand shift key.
It’s a version of this:

I have no idea where your microphone is in an iMac, but you probably need to find out. This microphone to headphone exercise sets the system to overlay each track on top of the old one without timing problems (in a healthy machine). If you play a click track and record it like that, the different between the two tracks is the latency setting. It’s stupid simple.
http://manual.audacityteam.org/o/man/tutorial_recording_multi_track_overdubs.html
That’s the overdubbing tutorial.
24 or 32 bit setting as I believe I would get a superior quality recording if a higher bit ratio is used?
Not exactly. What you get is better robustness. 44100, 16-bit, Stereo is the standard for Audio CD and that will take you beyond audibility both ways with very good fidelity. The digital television version is 48000, 16-bit, stereo. Slightly better high-end. If your job is simple processing and out the door, then either of those work just fine. Given that a great deal of product is MP3, anything higher than that is a complete waste of time (and drivespace).
But there are a couple of technical tricks needed to make that work and it starts to fall apart if you need serious post-production filtering, effects and processing. That’s when you shoot in 96000, 24-bit, Stereo. That’s the one you take into the post production edit suite with padded chairs and extra strong Starbucks. Venti, please.
It is concerning that the higher rates fail on your machine. I need to go back and read that again.
Koz